Semtech sees more weakness

ChrisKraeuter

SAN FRANCISCO (CBS.MW) -- Semtech hit its reduced financial targets for the third quarter, but the chipmaker's fourth-quarter financial outlook was below what most Wall Street analysts expected, citing high inventory and weak demand.

Shares of Semtech slipped 2 percent to $20.30 in after-hours trading.

The Camarillo, Calif.-based company said it reduced discretionary spending, cut internal inventory levels and "better focused our developmental resources" during its third quarter.

For the quarter ended Oct. 31, Semtech reported net income of $14.6 million, or 19 cents a share, on sales of $65 million. During the same quarter last year, net income was $9.3 million, or 12 cents a share, on sales of $48.1 million.

On Oct. 25, Semtech lowered its estimate for third-quarter earnings to 19 cents a share on sales of $65 million, citing order delays and sluggish demand.

For the fourth quarter, Semtech predicted earnings of 16 cents a share and sales of $59 million. Analysts had expected earnings of 18 cents a share and sales of $64 million, on average, according to Thomson First Call.

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